Question

While the executives of Pepsi Cola are trying to decide what to do, the university informs them that a similar offer has gone out to the Coca-Cola Company. Furthermore, if both companies want exclusive rights, a bidding war will take place. The executives at Pepsi would like to know how likely it is that Coke will want exclusive rights under the conditions outlined by the university.Perform a similar analysis to the one you did in Case 12.1, but this time from Coke’s point of view. Is it likely that Coke will want to conclude an exclusivity agreement with the university? Discuss the reasons for your conclusions.